Palm rebounds as earnings leap

JanetHaney

SANTA CLARA, Calif. (CBS.MW) -- Palm Inc. shares rebounded Thursday morning on the heels of a fourth-quarter report that showed profit and sales doubled in the company’s first full quarter as an independent and public company.

The hand-held computer giant (PALM) said it earned $16.9 million, or 3 cents a share, excluding separation charges related to its spinoff from 3Com (COMS). The numbers represent a whopping 147 percent jump from the year-ago period of $6.8 million, or 1 cent a share.

Shares of the Santa Clara, Calif.-based company advanced 1 5/8, or 6.2 percent, to 28 1/8 in recent trading.

Revenue in the quarter leaped 101 percent to $350.2 million, compared with $174.3 million the year earlier.

"The impressive year-over-year and sequential revenue growth - from a very strong third fiscal quarter -- tells us consumers and businesses believe Palm offers the solutions they need,” said Chief Executive Officer Carl Yankowski. “What's even more impressive is that we achieved these results despite industry wide component shortages.”

Additionally, Palm said it delivered more than 1.1 million devices in the quarter.

Separately, Palm said Wednesday that a faulty memory chip is inside up to 3 percent of its Palm IIIc, IIIxe, and Vx hand-held computing devices. See related story.

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